Plastic Market Growth: US$ 1050 Billion by 2033, at a 4% CAGR

The global plastic market is expected to attain a valuation of US$ 712 billion in 2023 and is projected to reach US$ 1050 billion by 2033, expanding at a CAGR of 4% during the forecast period.

The demand for plastic is surging across diverse industries, including food beverage, consumer goods, automotive, and electrical electronics. Global product consumption is being driven by the growing need for packaging material in the food beverage sector.

Food manufacturers seek packaging that preserves food quality and prevents contamination, and plastic’s barrier properties make it a favored choice, bolstering its demand. Further, the versatility and durability of polymers are driving their use in sports, fashion, polymer clay, and toy-making. They are easily moldable, allowing flexible packaging in various shapes and sizes.

In textiles, their high elasticity, durability, and visual appeal contribute to their rising utility. Additionally, their rigidity makes them suitable for packaging automotive and electrical spare parts. Further, these expanding applications across multiple industries, including food beverage, textile, electrical electronics, automotive, and consumer goods, are fueling the growth of the plastics industry.

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The demand for engineering polymers has surged due to their superior strength and durability compared to standard polymers. These light, cost-effective materials also offer enhanced thermal and mechanical properties. Increasingly, industries seek better polymer solutions for applications in building, machinery, and componentry. While the need for metal substitutes further drives the use of engineering polymers.

Various sectors, including automotive engineering, building, solar, and water, benefit from the advantages these materials provide over metal constructions. Leading international OEMs, like Volkswagen, have already adopted engineered plastic materials as replacements for metal parts, leading to significant weight reductions, such as a 40% decrease in weight achieved with Volkswagen’s crankshaft covers.

The substitution of metals with plastics, due to their strength, flexibility, and reliability, is driving market growth. Moreover, advanced and cost-effective plastics are finding increased applications across industries, further supporting market expansion.

Plastics can be tailored with superior physical and chemical qualities compared to metals through specialized design processes, contributing to industrial growth. Their lightweight nature makes them ideal for transportation applications, improving fuel efficiency and stimulating market growth.

Key Takeaways

The demand for plastic in the Asia Pacific is projected to rise with a promising CAGR of 4.3% during the forecast period.
The market in the United States is anticipated to expand with a CAGR of 4.1% during the forecast period.
The market in the United States is projected to be worth over US$ 90.5 billion in 2023.
By end-use, the packaging industry segment is expected to generate demand with a CAGR of 4.7% during the forecast period.

“The substitution of metals with plastics and growing demand for packaging materials is expected to drive market growth during the forecast period,”- comments an FMI Analyst

Competitive Landscape

The market for plastic is characterized by extreme competition, as key industry players are making significant investments to improve their manufacturing capabilities.

Recent Developments in the Plastic Market

In January 2023, BASF announced an investment to expand the capacity for polymer dispersions at its manufacturing facility in Merak, Indonesia.
In January 2023, SABIC reaffirmed its commitment to the circular economy by announcing plans to produce one million metric tonnes of TRUCIRCLETM solutions annually by 2030.
In December 2022, SABIC, a prominent player in the diversified chemical industry, launched a novel high-density polyethylene (HDPE) containing mechanically recycled content. This release is part of TRUCIRCLETM, the company’s initiative to promote a circular economy for plastics.
In January 2023, Evonik unveiled IN VIVO BIOTICSTM, a scientifically supported line of synbiotic products.
In February 2021, ExxonMobil successfully concluded the initial phase plant trial of its patented advanced recycling process in Texas, U.S.

Key Segmentation

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